Computer Hope

Other => Computer News => Topic started by: Geek-9pm on June 25, 2010, 08:16:16 PM

Title: Consumer PC Business AT 5%.
Post by: Geek-9pm on June 25, 2010, 08:16:16 PM

Dell: 5% Margins For Consumer PC Business Is Sustainable
JUNE 24, 2010 Wall Street Journal
http://online.wsj.com/article/BT-CO-20100624-707389.html
Hard to believe.
At five per cent a lot of companies are going to drop out.
And if that is true, what is the point of fever building your own computer? As companies quit we will see a lot of PCs stuff show up in the over stock market below the coast of the parts if bought individually.  8)

Title: Re: Consumer PC Business AT 5%.
Post by: rthompson80819 on June 25, 2010, 11:39:16 PM

While 5% profit margins doesn't sound like much, my limited understanding of the grocery business is that that operate on about half that much.

Title: Re: Consumer PC Business AT 5%.
Post by: soybean on June 26, 2010, 01:32:21 PM

According to http://answers.google.com/answers/main?cmd=threadview&id=204979:

"According to their retail profiles for "grocery and beverage stores"
any store in the $15-$20 million range, the gross margins are 25.6%
(net margins are 6%)."

The article about Dell is referring to net margin.  So, they're slightly below grocery and beverage stores. 

Title: Re: Consumer PC Business AT 5%.
Post by: Geek-9pm on June 26, 2010, 02:25:00 PM

Quote from: soybean on June 26, 2010, 01:32:21 PM

According to http://answers.google.com/answers/main?cmd=threadview&id=204979:

"According to their retail profiles for "grocery and beverage stores"
any store in the $15-$20 million range, the gross margins are 25.6%
(net margins are 6%)."

The article about Dell is referring to net margin.  So, they're slightly below grocery and beverage stores. 

Thanks Soybean. That's what I was thinking.
Perhaps Dell should  offer ...
Gourmet Coffee and Imported Chocolate
...to improve their profit margins.